Flour Mills Nigeria Plc Q3 results

The Company\'s recently released Q3-results show a dismay performance, reporting an exchange loss of a strange magnitude of N6.66bn wiping out the entire operating profit before tax to N1.08bn.

P/E soars to 8.14x from 3.32x in Q2-2008/09. This operational challenge reduced the Company\'s ROE from 29% in corresponding period in 2007/08 to 3%.

This has negatively impacted the Company\'s share performance in the market. In the interim, we do not expect a sharp resurgence in performance; hence, we maintain a LONG TERM HOLD recommendation on the stock especially for LONG TERM investors while traders should be wary of the stock. - Meristem